State Legislative Roundup: Summer Recess Policy Watch – July 20, 2026

While most state capitols are quiet for the summer, lawmakers left behind a heavy trail of unresolved policies, emergency packages, and upcoming fall battles. Here is your quick look at what is driving the legislative agenda in the following states:

California (Regular Session)

• Reforming Education Governance: Lawmakers are evaluating the impacts of Assembly Bill 181, recently signed by Governor Gavin Newsom, which enacts structural changes to streamline how the state’s TK-12 education policy is implemented.
• Tackling the Cost of Living: As the legislature prepares to return from summer recess, floor leaders are prioritizing a package of nearly 1,800 introduced bills targeting quality-of-life crises, focusing heavily on affordable housing bonds, childcare access, and utility rate relief.

Massachusetts (Regular Session)

• Regulating AI and Housing: Senate Democrats unveiled a massive $325 million economic development package. The bill mandates strict safety frameworks for frontier Artificial Intelligence developers and expands “by-right” duplex construction on residential lots to ease the housing crunch.
• Protecting Healthcare Workers: The Senate passed Senate Bill 3171 to mandate annual security reviews at medical facilities, shield victims’ data, and accelerate arrests following a spike in violence against frontline healthcare staff.

Michigan (Regular Session)

• Passing a Bipartisan Budget: Following a marathon all-night session, lawmakers finalized a $75.2 billion bipartisan budget for fiscal year 2026-27. The plan decreases overall spending by $1 billion, leverages no new taxes, and fully protects the state’s rainy-day fund.
• Bolstering Food Safety: Budget committees successfully integrated specialized funding increases to expand the state’s Dairy and Food Safety Fund, adding dedicated personnel to crack down on dangerous food additives and supplements.

New Jersey (Regular Session)

• Procuring Nuclear Energy: Governor Mikie Sherrill signed the bipartisan Power NJ Act, directing energy regulators to solicit bids for a new nuclear power plant aimed at bringing 1,100 megawatts of clean energy to the grid.
• Enacting the FY2027 State Budget: Lawmakers officially codified the state’s massive operational blueprint, appropriating over $60 billion in state funds alongside $30 billion in federal allocations.

North Carolina (Regular Session)

• Signing the $34B State Budget: Governor Josh Stein signed a historic $34.3 billion spending plan—the state’s first comprehensive budget since 2023—delivering the largest teacher pay raises in 15 years and assigning $700 million to Hurricane Helene recovery.
• Gearing Up for Veto Overrides: Lawmakers are preparing for their July 27 return, with Republican supermajorities aiming to force through a series of vetoed bills, including the controversial permitless carry measure, Senate Bill 50.

Ohio (Regular Session)

• Boosting Math Literacy: Before entering their summer recess, lawmakers pushed Senate Bill 19 to Governor Mike DeWine’s desk. The new law introduces specialized math improvement tracks and pathways for student acceleration.
• Managing Surplus Revenue: The Office of Budget and Management reported that Ohio concluded its fiscal year with a massive $1.8 billion revenue surplus above expectations, driven primarily by resilient personal income tax returns.

Alaska (Special Session)

• The LNG Megaproject Collapse: Governor Mike Dunleavy rejected a compromise tax framework that sought to close corporate loopholes on pass-through entities. Labeling the clause a “poison pill,” the Governor triggered a third special session starting July 27.
• Overhauling Pipeline Property Taxes: The upcoming session will try to salvage the $54.5 billion gas line project by replacing a front-loaded 2% annual property tax with a predictable tax based on pipeline throughput volume.

South Carolina (Special Session)

• The Mid-Decade Redistricting Push: Lawmakers remain locked in a fiery special session called by Governor Henry McMaster to redraw the state’s U.S. House map. The proposed House Bill 5683 aims to alter the boundaries to favor Republican candidates across all seven congressional districts.
• Shifting Primary Calendars: Alongside the gerrymandering debates, the legislature is attempting to move the state’s congressional primary calendar forward to accommodate the altered maps.

Pennsylvania (Regular Session)

• Resolving the Late Budget: Ending a two-week stalemate, the General Assembly passed and Governor Josh Shapiro signed a $50.8 billion compromise budget. The final deal protects the state’s Rainy Day Fund while pouring $900 million into public education.
• Studying the Zoning Shortage: To address the housing crisis, the legislature initiated an official study into the state’s outmoded municipal planning code. Committees are investigating whether eliminating single-family mandates to allow duplexes can curb soaring costs.